NICHIMEN CORPORATION Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal is directed against the order dated 6th May, 1986 passed by the Chairman, Foreign Exchange Regulation Appellant Board (for short called 'FERA Board') and the order dated 30th August, 1984 passed by the Special Director, Enforcement Directorate, Foreign Exchange'Reguation Act, 1973, New Delhi, (for short called 'FERA') By order dated 30th August, 1984 the Special Director, Enforcement Directorate, FERA, New Delhi imposed on the appellant company a penalty of Rs.26,000.00 and this order was upheld by FERA Board vide its order dated 6th May, 1984 mentioned hereinabove.

(2.) The facts of the case briefly stated are that pursuant to an application submitted by the appellant company under section 29(2)(a) of FERA, the Reserve Bank of India, Bombay vide its order dated lst/6th January, 1976 granted no objection certificate to the appellant company for continuing offices in Bombay, New Delhi and Calcutta for undertaking liaison activities relating to import and export of goods to/from India on behalf of their head office in Japan. This permission was granted subject to the following conditions:-

(3.) From these conditions it will be seen that the branch offices of the petitoiner situate in Bombay, New Delhi and Calcutta were not entitled to charge any commission/ fee or any other remuneration for the liaison activities to be rendered by these offices.